Wk8: Article Review & Wk8: Strategic Profile Analysis

3

WK2 ARTICLE REVIEW

Trae Clavo

Doctor of Business, University of Trevecca

Cur Topics/ Business Strategy (BUS-8020-O06.2)

Dr. Rick Mann

March 27, 2022

As far as a business strategy is concerned, the formulation and implementation of the goals of any business and initiates toward the achievement of the objectives are the main compositions, especially when it comes to the planning of any business strategy. Based on the business strategy, several factors must be used in the case of any business strategy application. The duty of making sure that the business strategy is implemented in any organization is left in the hand of all stakeholders. The business stakeholders may include the employer, the employees, and the managers. Strategic planning brings about the organization's overall direction, which involves the specification of the organization's objectives. (Mann,. 2019)

The first step that should be considered, especially when coming up with a strategy, is the organization's objectives. The organization's objectives are the driving factor of any organization or business operating normally. If an organization has achieved its objectives, there is no need to establish any strategy for the industry since the company is doing well. The imposition of a new approach in a business means that the firm has not yet achieved the balance of the four SWOT analysis factors as one of the critical strategic planning tools. When the organization is not balancing its factor, it means there are no strengths in the business, the weaknesses in the industry are many, opportunities have not yet been fully attained, or there are some threats facing the company. As a result of this imbalance in the organization, the organization will then take the initiative to develop some strategies to control these imbalances (Walker & Ruekert, 1987).

Therefore, organizations and businesses must develop several ways that can help in coming up with a decision on which strategy to use when it comes to business strategy. The frame of consideration of the models helps define the best turn that a business can take in the performance of its activities. Although the strategic actions taken may seem static in the organization's development, some keep on often changing due to the feedback realized from the previous strategy applied and its result. Some of these strategies change, and they are replaced with others to test the other strategy's operation if it is reasonably fit for the organization's development. Some different methods fail due to some essential factors in the organization. For instance, a strategy may be outlawed by the nature of the threat of risk that occurs in the business.

Suppose an organization starts the practice of the use of computers in their operation to enhance effective communication. In that case, computers will be a strategy put in place to correct a problem of communication detected from the previous method. Although the process may aid in faster and more effective communication among the organization members, the strategy may be affected by the incompetence of the organization members. Some organization members may be illiterate, making it difficult to use the computers for effective communication. The emergency of a strategy comes from another applied method but failed. The strategy creation should as well look at the occurrence of the next round and how the organization would behave towards the system put in place (White, 1986)

For any business to achieve a good strategy, it should look at the cost leadership level; the cost of leadership is determined at gaining the market's competitive advantage using its low producing mechanism of a property to control the market in terms of the price. For a company to achieve the cost leadership strategy, it has to have excellent knowledge of its organization's operation in terms of its strengths, weaknesses, opportunities, and threats and look on the side of the threats most likely to arise. In cost leadership strategy, the organization is more likely to fit well in the market since it will be more competitive, taking the first position.

The use of business strategies is of great importance, especially when it comes to the transformation or advancement of any business. Although every business should have its operation strategy to make it fit well in the market, the swot analysis is significant since it evaluates the company first before coming up with any decision. For instance, in the case of cost leadership strategy, every organization works toward achieving minimal production cost to offer reasonable prices to their customers. For the cost leadership strategy to be influential, several factors are considered in the current organizations. In the present world, before any business comes up with any system, it has first looked on to the side of the risk that the company can encounter while undertaking the strategy (Peng, 2000).

The cost leadership strategy is primarily applied in food dealing companies. Most of the companies will tend to minimize their production. A maize meaning company can engage in the production of maize to reduce the cost of buying the maize. The company will use its raw materials, maize, in production. As the company uses its maize to produce maize floor, the cost of production is reduced; hence the maize floor company can sell the products to its customers at low prices. The lower the merit of a commodity tends to attract many customers.

As a result, the company will be able to dominate the market since its products and the maize flour will be cheap compared to other company’s products. When a particular company can compete in the market and do well, the use of cost leadership is then achieved.

Although the strategy may be effective in some areas, the organization should first consider the main factors that can affect its effectiveness. In the current world, the organization is faced with challenges of risks. For a strategy of coat leadership to be applied, there must be consideration of the swot analysis of that company. The company should look at its opportunities in achieving a cost-effective strategy. What options can an organization have towards the achievement of that strategy? The organization should also look at the weaknesses towards achieving the system. If the organization's leadership is poor, there will be challenges in implementing the plan. The organizations also have strengths either in the business or outside the industry. The company may be strong enough to implement specific strategies without difficulties. The threats towards achieving the strategy's goal should also be observed when a particular organization decides to develop a plan.

Reference

Mann, R. (2019). Building strategic organizations: The first five tools of strategy and strategic planning. Nashville: ClarionStrategy. 

Peng, M. W. (2000). Business strategies in transition economies. Sage. https://books.google.com/books?hl=en&lr=&id=tvW_TcoQvagC&oi=fnd&pg=PR8&dq=business+strategies&ots=LL30uCtqgg&sig=-ITsOiu64L_sML5kbIwyOmyphR8

Walker Jr, O. C., & Ruekert, R. W. (1987). Marketing's role in implementing business strategies: a critical review and conceptual framework. Journal of Marketing, 51(3), 15-33. https://journals.sagepub.com/doi/abs/10.1177/002224298705100302

White, R. E. (1986). Generic business strategies, organizational context and performance: An empirical investigation. Strategic Management Journal, 7(3), 217-231. https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.4250070304